Correlation Between Dometic Group and Lifco AB
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By analyzing existing cross correlation between Dometic Group AB and Lifco AB, you can compare the effects of market volatilities on Dometic Group and Lifco AB and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Dometic Group with a short position of Lifco AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dometic Group and Lifco AB.
Diversification Opportunities for Dometic Group and Lifco AB
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dometic and Lifco is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dometic Group AB and Lifco AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifco AB and Dometic Group is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Dometic Group AB are associated (or correlated) with Lifco AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifco AB has no effect on the direction of Dometic Group i.e., Dometic Group and Lifco AB go up and down completely randomly.
Pair Corralation between Dometic Group and Lifco AB
Assuming the 90 days trading horizon Dometic Group AB is expected to under-perform the Lifco AB. But the stock apears to be less risky and, when comparing its historical volatility, Dometic Group AB is 1.02 times less risky than Lifco AB. The stock trades about -0.02 of its potential returns per unit of risk. The Lifco AB is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 34,300 in Lifco AB on November 27, 2024 and sell it today you would earn a total of 3,620 from holding Lifco AB or generate 10.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dometic Group AB vs. Lifco AB
Performance |
| Timeline |
| Dometic Group AB |
| Lifco AB |
Dometic Group and Lifco AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dometic Group and Lifco AB
The main advantage of trading using opposite Dometic Group and Lifco AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dometic Group position performs unexpectedly, Lifco AB can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lifco AB will offset losses from the drop in Lifco AB's long position.| Dometic Group vs. Thule Group AB | Dometic Group vs. Husqvarna AB | Dometic Group vs. Trelleborg AB | Dometic Group vs. Essity AB |
| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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